Pledge Fund


Pledge Fund
A special type of fund in which members of the fund work toward a specific investment goal by making defined contributions in a pool over a period of time. Many angel investors have started to employ a pledge fund format in venture capital investing.

After the dotcom bubble, venture capitalists became more concerned about the start-up companies that they would finance. Many venture capitalists decided to set up pledge-fund style angel investor clubs instead of following the conventional format that was popularized in the 1990s. This was largely because using a pledge fund format would not force individual angel investors to invest in ventures that the majority of the group decided on, but would allow each member to elect whether to take part in an investment opportunity on a case-by-case basis. This method was well received by investors who were skittish about start-up investments after the dotcom bubble had burst.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Fund and release — (also called Threshold Pledge) is a system developed to address one of the problems of distributed funding: that before putting up their own money, contributors need to be assured that others are also contributing. In a fund and release system, a …   Wikipedia

  • pledge — [plej] n. [ME plegge < OFr pleige < ML plegium < plevium, security, warranty, infl. by Frank * pligi, liability; akin to OS plegan, to warrant] 1. the condition of being given or held as security for a contract, payment, etc. [a thing… …   English World dictionary

  • fund(s) — fund or funds To capitalize with a view to the production of interest. Also, to put into the form of bonds, stocks, or other securities, bearing regular interest, and to provide or appropriate a fund or permanent revenue for the payment thereof.… …   Black's law dictionary

  • fund(s) — fund or funds To capitalize with a view to the production of interest. Also, to put into the form of bonds, stocks, or other securities, bearing regular interest, and to provide or appropriate a fund or permanent revenue for the payment thereof.… …   Black's law dictionary

  • Fund — Fund, v. t. [imp. & p. p. {Funded}; p. pr. & vb. n. {Funding}.] 1. To provide and appropriate a fund or permanent revenue for the payment of the interest of; to make permanent provision of resources (as by a pledge of revenue from customs) for… …   The Collaborative International Dictionary of English

  • pledge — pledge1 [pledʒ] n ▬▬▬▬▬▬▬ 1¦(promise)¦ 2¦(money)¦ 3¦(something valuable)¦ 4¦(us colleges)¦ ▬▬▬▬▬▬▬ [Date: 1300 1400; : Old French; Origin: plege, from Late Latin plebium, from plebere to pledge ] 1.) ¦(PROMISE)¦ …   Dictionary of contemporary English

  • pledge taker — noun a volunteer who records (usually by telephone) contributions pledged in a fund drive • Hypernyms: ↑volunteer, ↑unpaid worker …   Useful english dictionary

  • Collateralized fund obligation — A collateralized fund obligation (CFO) is a form of securitization involving private equity fund or hedge fund assets, similar to collateralized debt obligations. CFOs are a structured form of financing for diversified private equity portfolios,… …   Wikipedia

  • Criticism of the Pledge of Allegiance — The criticism of the Pledge of Allegiance of the United States exists on several grounds. Its use in public schools has been the most controversial, as critics contend that a government sanctioned endorsement of religion violates the… …   Wikipedia

  • Motion Picture & Television Fund — The Motion Picture Television Fund (MPTF) is a charitable organization that offers assistance and care to those in the motion picture and television industries with limited or no resources. Its mission is to enrich the lives of people in the… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.